Question: John has to decide whether to buy a zero - coupon bond wilh very limbe risk that costs $ 9 5 0 and will puy

John has to decide whether to buy a zero-coupon bond wilh very limbe risk that costs $950 and will puy $1070 in ose year or put his money in a swings account with an ansual interest rate of 12%.
Compute the difference ia the rate of return of the two imesments. Round your answer to one decimal place.
Difference in the rates of return: Which of the two ievestesents will John prefert
John has to decide whether to buy a zero - coupon

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